Knight Transportation Inc (KNX)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 26.14 | 21.08 | 20.30 | 20.11 |
| Days of sales outstanding (DSO) | days | 48.78 | 44.68 | 55.63 | 45.64 | 40.67 |
| Number of days of payables | days | 23.95 | 16.90 | 24.71 | 13.69 | 12.93 |
| Cash conversion cycle | days | 24.83 | 53.93 | 51.99 | 52.24 | 47.84 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 48.78 – 23.95
= 24.83
The cash conversion cycle of Knight-Swift Transportation Holdings Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was 48.78 days, which increased from 44.28 days in 2022. This suggests that the company took longer to convert its investments in inventory and other resources into cash.
Comparing to 2021 and 2020, where the cash conversion cycle was 55.51 days and 45.40 days respectively, the decrease in 2020 was followed by an increase in 2021, indicating potential inefficiencies in managing working capital. However, in 2019, the company had a cash conversion cycle of 40.36 days, indicating a more efficient use of its resources to generate cash.
Overall, Knight-Swift Transportation Holdings Inc may benefit from focusing on streamlining its cash conversion cycle to improve its operational efficiency and cash flow management.
Peer comparison
Dec 31, 2023